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Company X's EPS is 2.00.Itsclosestcompetitor,CompanyY,istradingataP/Eof18,andbothcompanieshaveasimilaroperatingandfinancialprofile.IfCompanyXistradingat2.00. Its closest competitor, Company Y, is trading at a P/E of 18, and both companies have a similar operating and financial profile. If Company X is trading at 2.00.Itsclosestcompetitor,CompanyY,istradingataP/Eof18,andbothcompanieshaveasimilaroperatingandfinancialprofile.IfCompanyXistradingat33.00 per share, Company X is most likely:
A
undervalued compared to Company Y
B
fairly valued compared to Company Y
C
overvalued compared to Company Y
